Press Release

Kraken Expands Margin Trading with 10x Leverage and WLD, WLFI Listings

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Kraken has long positioned itself as a trader-first crypto exchange, building a robust ecosystem with a diverse asset collection. To boost digital asset adoption, the exchange recently announced a major upgrade to Kraken margin trading.

To begin with, this announcement includes a fan-favorite increase to margin leverage. Additionally, the platform now allows its users to trade the new Worldcoin (WLD) and World Liberty Financial (WLFI) pairs, as well as use a broader set of collateral assets.

These updates are effectively designed to empower traders with additional tools, flexibility, and capital efficiency. At the same time, Kraken encourages responsible trading by providing a set of extensive risk management tools.

Give margin trading on Kraken a go or read on to learn more about Kraken’s latest upgrades and why they matter for you.

Kraken Boosts Margin Leverage to 10x on Five Major Cryptos

The Kraken crypto exchange has increased maximum leverage to 10x on select markets, allowing eligible clients to take larger positions with the same capital and act more quickly when prices move.

The increase covers five high-demand assets: Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Sui (SUI), and Litecoin (LTC). The leverage on these markets will increase from 2x to up to 10x, improving capital efficiency as well as optionality for hedging and short-term strategies.

What does the “up to 10x leverage” mean for newcomers to margin trading? By trading with margin on Kraken, qualified clients temporarily borrow funds with which they can achieve greater profits on smaller market movements.

A 1% move in the underlying can result in a 10% change at a 10x leverage, giving margin traders much higher potential for profit (or loss). Since trades can go both ways, disciplined risk controls, such as stop-loss orders and incremental position sizing, remain essential for managing the overall risk.

Kraken Adds Margin Trading for WLD, WLFI, BNB, AVNT, and STBL

In addition to higher leverage on existing pairs, Kraken has introduced margin trading for two emerging tokens: Worldcoin (WLD) and World Liberty Financial (WLFI).

Both pairs are available with up to 3x leverage and are currently offered as long-only markets. However, it’s worth noting that the margin on WLD and WLFI comes with different position limits. For instance, the margin for WLD trading is set at 18,000 units, whereas the margin limit for WLFI trading is 135,000 units.

Position limits for WLD and WLFI:

  • Margin WLD trading: 18,000 units
  • Margin WLFI trading: 135,000 units

Meanwhile, Kraken has also extended its margin support for Binance (BNB/USD), Avantis (AVNT/USD), and STBL (STBL/USD). Current position limits are 50/50 (long/short) for BNB, 18,000 (long-only) for AVNT, and 30,000 (long-only) for STBL.

One of the main reasons behind adding the new pairs is their growing popularity. Kraken’s users have been eagerly anticipating these new possibilities that now bring the exchange’s roster of new margin assets to over 230 margin markets on Kraken Pro.

Kraken Expands Collateral Options for Margin Trading

Beyond new pairs, Kraken is expanding its list of eligible collateral assets, allowing clients to fund positions more conveniently. In Kraken’s August announcement, the exchange extended collateral support to include:

  1. SPEX6900 (SPX)
  2. Algorand (ALGO)
  3. Ondo (ONDO)
  4. Artificial Superintelligence Alliance (FET)
  5. Uniswap (UNI)
  6. Curve DAO Token (CRV)
  7. Fartcoin (FARTCOIN)
  8. Ethena (ENA)

While advanced margin features open the door to enhanced trading moves, wider collateral options unlock more flexibility in how traders back their positions.

Requirements and Risks of Using Margin on Kraken Pro

To use margin on Kraken Pro, eligible clients must hold at least one collateral currency and qualify as Intermediate or Pro clients. Users need to submit personal information such as an email, name, address, and ID documents, while Pro clients must complete a KYC and enable 2FA. Clients in the US and Australia must also self-certify as “Eligible Contract Participants” to use these features.

It’s also important to be aware of the additional fees you’ll incur when trading crypto margin pairs. When opening a position, Kraken charges a fixed fee of 0.01% to 0.05% of the total position value. A rollover fee of the same amount is applied every four hours until the position is closed. These fees are calculated based on the full value of the margin extension, not just the collateral.

All in all, margin is a double-edged sword, as it magnifies both gains and losses. This is why, for beginners, it’s important to size positions conservatively and avoid concentrating all collateral in a single asset. Additionally, there is no guarantee that limit orders will execute at a given price or that margin pools will have sufficient liquidity during volatile markets.

You can consider stop-loss or take-profit orders to define risk before opening a position. It’s important to bear in mind that leverage can improve capital efficiency for hedging and tactical trading, but it does not reduce underlying asset volatility.

Why Kraken’s Margin Trading Expansion Appeals to Traders

Kraken’s margin enhancements show its commitment to competing with the industry’s largest exchanges. By offering 10x leverage on core tokens like ADA and LINK, the exchange matches or exceeds the leverage offered by many competitors while maintaining high security standards.

In particular, the newly supported WLD and WLFI pairs cater to traders interested in emerging narratives like decentralized identity and DeFi ventures. Additional assets, such as BNB, AVNT, and STBL, broaden the roster of margin markets beyond mainstream coins. Finally, Kraken’s infrastructure provides deep liquidity, integrated charting, and advanced order types on the Kraken Pro platform.

Conclusion

Kraken’s latest margin update is a significant milestone. The headline change to 10x leverage on ADA, LINK, AVAX, SUI, and LTC offers greater capital efficiency and strategic flexibility.

Crucially, the addition of WLD/USD and WLFI/USD pairs, along with BNB/USD, AVNT/USD, and STBL/USD, brings emerging projects and established tokens into the margin arena. Adding to the list of exciting upgrades, expanded collateral support lets traders use a broader range of holdings to secure positions.

Traders looking to elevate their strategies can explore the new margin markets and begin charting their next moves on Kraken today.

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Disclaimer: This publication is sponsored. Coinspeaker does not endorse or assume responsibility for the content, accuracy, quality, advertising, products, or other materials on this web page. Readers are advised to conduct their own research before engaging with any company mentioned. Please note that the featured information is not intended as, and shall not be understood or construed as legal, tax, investment, financial, or other advice. Nothing contained on this web page constitutes a solicitation, recommendation, endorsement, or offer by Coinspeaker or any third party service provider to buy or sell any cryptoassets or other financial instruments. Crypto assets are a high-risk investment. You should consider whether you understand the possibility of losing money due to leverage. None of the material should be considered as investment advice. Coinspeaker shall not be held liable, directly or indirectly, for any damages or losses arising from the use or reliance on any content, goods, or services featured on this web page.

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